Gems, jewellery exports up 25.5% during Apr-May

The government is hoping that incentives such as 3 per cent interest subsidy and enhanced rate for duty drawback would further help contain the decline in exports.NEW DELHI: Exports of gems and jewellery grew 25.5 per cent to USD 5.78 billion during the first two months of the current fiscal, largely driven by demand in India's major markets like the US.

Gems and jewellery contribute to about 14 per cent to the country's overall exports.

The rise during the two-month period was mainly supported by silver exports at USD 673.60 million up 176.18 per cent from USD 243.90 million a year ago.

Exports of cut and polished diamonds increased to USD 3.75 billion during April-May, from USD 3.4 billion a year ago.

In 2015-16, the exports dipped 11.7 per cent to USD 31.98 billion.

"The decline in exports was mainly affected by slowdown in Europe, Japan and China. However, the US is picking up slowly, which is helping in registering positive growth in the sector," an official said.

However, shipments of gold jewellery contracted 10 per cent to USD 535 million during the two months under review.

Exports of gold medallion and coins too dipped marginally to USD 343 million, from USD 346 million in April-May 2015-16.

The government is hoping that incentives such as 3 per cent interest subsidy and enhanced rate for duty drawback would further help contain the decline in exports.

According to GJEPC data, imports of rough diamonds rose by 26.35 per cent to USD 3.40 billion in April-May 2016. Imports of gold bars too grew by about 83 per cent to USD 933 million.